The Day at a Glance | August 18 2023

*Retail sales in Mexico logged robust growth in June. 

*INEGI published its Timely Indicator of Economic Activity (IOAE), which forecasts that the Global Indicator of Economic Activity (IGAE) logged a 3.9% y/y figure in June and 3.4% in July. 

*Former US President Donald Trump is requesting the federal judge overseeing his criminal electoral subversion case to schedule the trial for April 2026, arguing that the previously considered trial timeline could conflict with other criminal and civil cases he is involved in. 

*Mortgage interest rates in the US have increased to their highest level in 21 years, with the 30-year fixed rate reaching 7.09%, up from 5.13% a year ago.

Economic environment

Retail sales in Mexico increased at a robust pace in June, widely surpassing market expectations. In June, retail activity recorded an annual 5.9% increase, nearly double the 3.0% expected by the analysts´ consensus. This positive performance was boosted by a strong monthly rebound – a 2.3% m/m increase compared to May’s -0.5% m/m, and exceeding the market’s expected 0.9% m/m figure. Double-digit increases were highlighted in sales at self-service and department stores (17.5% y/y); clothing and footwear accessories (19.4% y/y), and online (30.3% y/y). With this, retail sales figures logged positive momentum at the end of the 2Q23, despite accumulated inflationary effects.